Q.9

On May 1, Year 1, Benzs Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent interest. Required a. What is Benzs interest income for Year 1? b. What is Benzs total amount of receivables at December 31, Year 1? c. How will the loan and interest be reported on Benzs Year 1 statement of cash flows? d. What is Benzs interest income for Year 2? e. What is the total amount of cash that Benzs will collect in Year 2 from Mark Henry? f. How will the loan and interest be reported on Benzs Year 2 statement of cash flows? g. What is the total amount of interest that Benzs earned on the loan to Mark Henry?

Interest income b. Receivables $ $ 400 10,400 Interest income $ $ 200 10,600 e. Cash g. Interest earned $ 600